UK last major carmaker MG Rover Group said its Chinese partner declined to renew talks over the possible merger that could help the bankrupt UK company survive.
"We have received a copy letter from SAIC early this morning which communicates to the DTI (Department of Trade and Industry) that they are not willing to acquire either the whole or part of the business on a going concern basis," said Ian Powell, joint administrator at PricewaterhouseCoopers LLP that was appointed to oversee the company after it filed for bankruptcy protection about a week ago.
The Shanghai Automotive Industry Co., Rover’s Chinese partner that declined to come to an agreement in rescuing the British carmaker from bankruptcy, said earlier it had never had an option to create a joint venture with Rover.
Rover closed its British plant last week leaving about 6,000 of its employees jobless. On Sunday, British government provided a 6.5 million pound (US$12.2 million) emergency loan to pay workers that lost their jobs in Longbridge.